A wave of new condo developments is reshaping the skyline of West Palm Beach, Florida, and buyers are moving quickly. Some projects are nearly sold out while others are just getting underway, creating a market where timing and preparation matter for anyone considering a purchase.
The building buyers ask about most often is South Flagler House, according to Kourtney Pulitzer, a senior global real estate advisor with Sotheby’s International Realty who works with buyers in downtown West Palm Beach, on the island of Palm Beach, and in Avenir in Palm Beach Gardens. Pulitzer says South Flagler House’s pricing, which starts near $10 million, places it in the ultra-high-net-worth category. That has pushed many buyers toward other projects gaining traction. Mr. C sold through quickly, and Pulitzer says only a handful of units remain. The Berkeley and Shorecrest are drawing steady attention. The Ritz-Carlton Residences is almost completely sold out. Alba is finished, and buyers can move in now.
The current mix gives buyers a choice between a building that is ready today and one that will deliver in several years. Pulitzer notes that a finished tower like Alba and one arriving in three years are a similar comparison, since both are brand new. For many buyers, the deciding factor is how long they are willing to wait.
One group Pulitzer sees often is people who already live nearby, on the island of Palm Beach. Buildings there are capped at five or six stories, and zoning does not allow anything taller. She does not expect that to change. “To get that elevation, vertical living, and those views, people are jumping over the bridge from Palm Beach to West Palm Beach,” she says. “They’re living on a nice high floor with a beautiful view, and they can walk downstairs to everything.” That walkability is part of the appeal. As downtown West Palm Beach continues to grow, Pulitzer says, the new towers put residents at the center of it.
Seasonal buyers are another steady source of demand. Many start arriving around Halloween, are settled by January, and stay through April or June. Pulitzer says the area sells a significant amount of real estate to this group every season, and early activity suggests this season will be no different. Many of these deals close without a mortgage. Pulitzer says Palm Beach County is one of the strongest cash markets in the country. Buyers who do finance tend to be high earners or second-home buyers who know that rates move up and down and that a loan can be refinanced later. Her shorthand for them is a familiar one: marry the property, date the rate.
Buying pre-construction means buying something that does not exist yet, so the people behind a project matter. Pulitzer says standard diligence and research are the starting point. Buyers should also find out who is financing the project, who the developer and contractor are, and what else they have built. She gathers much of that information directly. She recently had dinner with the head of Mast Capital, one of the firms behind Banyan Tree Residences West Palm Beach. “I know them personally,” she says. “I understand who’s putting up the money. I understand who the contractor is. I know what other buildings they’ve built.” For buyers, the takeaway is to ask these questions before signing and to work with someone who can answer them from direct knowledge of the local development community.
Deposit schedules, delivery timelines, and what happens if a building runs late are all spelled out in the purchase contract. Pulitzer says the value of an experienced advisor is knowing where that contract has pressure points. “It’s understanding the things that can and cannot be negotiated, understanding the pitfalls and what could happen, and really understanding what you’re buying into,” she says. In her view, that knowledge helps a buyer’s bottom line as well as their grasp of the deal. Before signing, buyers should read the deposit terms, the delivery language, and the remedies if construction is delayed. They should also ask which of those terms are open for discussion.
